Keeping You Informed - Q4 2023

In 2023 Crown’s operating platform demonstrated remarkable resilience and adaptability, as we faced challenges and valuable learning experiences.  In a landscape where some may adopt a “wait-and-see” approach, our team has consistently been proactive, developing creative solutions tailored to the distinctive needs of each asset.  Key achievements for the year include:

• Securing zoning approvals for over 1 million square feet of residential development, with further progress on an additional million square feet, all within CR IV LP.
• Investing over $31.9 million in value-add upgrades across our fund properties.
• Completing ~540,000 sq. ft. of leasing transactions within our fund portfolio.
• Attaining renewal rates at or above in-place rents for 96% of lease transactions.
• Advancing decarbonization initiatives for an additional 2 million sq. ft. of assets.

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By leveraging our platform's strengths, we've sold $76.9 million of fund properties, achieving an average IRR of 27%. We have also acquired a small bay portfolio shortly before the close of the year.

With a substantial reserve of capital in our value-add fund, CR V LP, we are well-positioned to capitalize on emerging market opportunities. As interest rates and inflation trajectories become clearer, we anticipate a market with more motivated sellers and narrowing bid-ask spreads.  As we step into 2024, our optimism is bolstered by several factors:

• The GTA remains one of North America's most significant office markets.
• Organizations are increasingly adopting definitive return-to-office policies, including hybrid models.
• Labour market conditions are easing, encouraging greater office presence among employees.
• Our core market exhibits strong economic and demographic diversity, coupled with Canada's significant population growth driven by immigration.

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Crown’s commitment to delivering superior returns and enhancing work environments through our unique operating platform remains steadfast.Thank you for your continued trust and partnership.